Novartis is expanding its horizons by making big acquisitions. The Swiss drugmaker on Sunday said it agreed to acquire U.S. biotech firm Avidity Biosciences for about $12 billion in cash, as the company looks to bolster its portfolio of treatments for rare muscle disorders.
As per the terms of the deal, Avidity stockholders will receive $72 per share in cash, representing a premium of 46% to the company’s closing on Friday. Bloomberg News reported on the deal earlier, citing a person familiar with the matter.
Additionally, the company entered a $5.7 billion licensing agreement with Monte Rosa Therapeutics to develop small molecule degraders for immune-mediated diseases. These moves underscore Novartis’ commitment to cutting-edge research and long-term growth in high-potential therapeutic areas.
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Novartis AG, headquartered in Basel, Switzerland, is a leading global pharmaceutical company focused on innovative medicines across oncology, cardiology, immunology, and neuroscience.
Financially, Novartis reported robust results in 2024, with net sales up 12% and core operating income rising 22% on a constant currency basis. The company also achieved FDA approval for Rhapsido (remibrutinib), an oral treatment for chronic spontaneous urticaria.
The acquisition aims to strengthen Novartis’ neuroscience and rare disease portfolio by integrating Avidity’s late-stage programs and AOCs™ technology. Avidity will spin off its early-stage cardiology programs into a new publicly traded entity, SpinCo, with the deal expected to close in the first half of 2026, subject to customary regulatory approvals.
Avidity Biosciences, based in San Diego, is a pioneering biopharmaceutical company focused on developing RNA-based therapies for genetic neuromuscular diseases. Its proprietary platform, Antibody Oligonucleotide Conjugates (AOCs™), combines the targeting ability of monoclonal antibodies with the precision of RNA therapeutics to deliver treatments directly to muscle tissues.
Avidity’s programs target conditions such as Duchenne muscular dystrophy (DMD), myotonic dystrophy type 1 (DM1), and facioscapulohumeral muscular dystrophy (FSHD), representing a novel approach in precision medicine. The company has positioned itself as a leader in this emerging therapeutic area due to its unique delivery platform and promising clinical pipeline.
The deal follows Novartis’ $3.1 billion acquisition of Anthos Therapeutics in February to enhance cardiovascular offerings and the $1.7 billion deal with Regulus Therapeutics in April for a kidney disorder therapy.
By integrating Avidity’s late-stage programs and proprietary AOCs™ technology, Novartis gains access to innovative RNA-based treatments, accelerating its presence in emerging therapeutic modalities. The spin-off of Avidity’s early-stage cardiology programs into SpinCo reflects a focused approach to maximize value while managing pipeline diversification.
Coupled with recent acquisitions in cardiovascular and kidney disease therapies, these moves demonstrate Novartis’ commitment to targeted growth through strategic M&A, innovation, and global market expansion.